Key challenges to the development of modern Spain:political and economic aspects

Abstract

The article analyzes the main political and economic challenges to the left-wing PSOE-Sumar coalition government formed in 2023. The paper characterizes the positions of the ruling bloc and assesses the influence the Catalan and Basque nationalist parties have on the decision-making process in the Spanish Parliament. In particular, the risks for the central authorities after the adoption of the amnesty law for Catalan separatists in 2024 are highlighted. Additionally, foreign policy factors influencing the development of Spain are revealed. Special attention is paid to the group of socio-economic challenges on the agenda of the Kingdom. The article gives an overview of the main macroeconomic indicators of the country in 2023, underscores problem areas and presents possible directions for improving the economic policy. The research also compares the legal basis of the Spanish and Ukrainian territorial structure in terms of interaction between the center and regions. The author emphasizes the limited capacity of the Ukrainian regions to protect their interests in the political process of the country. The paper concludes with an assessment of the medium-term prospects for Pedro Sanchez’s coalition government.